The site of advanced Amerindian civilizations, Mexico came under Spanish rule for three centuries before achieving independence early in the 19th century. A devaluation of the peso in late 1994 threw Mexico into economic turmoil, triggering the worst recession in over half a century. The nation continues to make an impressive recovery. Ongoing economic and social concerns include low real wages, underemployment for a large segment of the population, inequitable income distribution, and few advancement opportunities for the largely Amerindian population in the impoverished southern states. Elections held in July 2000 marked the first time since the 1910 Mexican Revolution that the opposition defeated the party in government, the Institutional Revolutionary Party (PRI). Vicente FOX of the National Action Party (PAN) was sworn in on 1 December 2000 as the first chief executive elected in free and fair elections.

tsunamis along the Pacific coast, volcanoes and destructive earthquakes in the center and south, and hurricanes on the Pacific, Gulf of Mexico, and Caribbean coasts

Environment - current issues:

scarcity of hazardous waste disposal facilities; rural to urban migration; natural fresh water resources scarce and polluted in north, inaccessible and poor quality in center and extreme southeast; raw sewage and industrial effluents polluting rivers in urban areas; deforestation; widespread erosion; desertification; deteriorating agricultural lands; serious air and water pollution in the national capital and urban centers along US-Mexico border; land subsidence in Valley of Mexico caused by groundwater depletion
note: the government considers the lack of clean water and deforestation national security issues

mixture of US constitutional theory and civil law system; judicial review of legislative acts; accepts compulsory ICJ jurisdiction, with reservations

Suffrage:

18 years of age; universal and compulsory (but not enforced)

Executive branch:

chief of state: President Vicente FOX Quesada (since 1 December 2000); note - the president is both the chief of state and head of government
head of government: President Vicente FOX Quesada (since 1 December 2000); note - the president is both the chief of state and head of government
cabinet: Cabinet appointed by the president; note - appointment of attorney general requires consent of the Senate
elections: president elected by popular vote for a six-year term; election last held 2 July 2000 (next to be held 2 July 2006)
election results: Vicente FOX Quesada elected president; percent of vote - Vicente FOX Quesada (PAN) 42.52%, Francisco LABASTIDA Ochoa (PRI) 36.1%, Cuauhtemoc CARDENAS Solorzano (PRD) 16.64%, other 4.74%

Legislative branch:

bicameral National Congress or Congreso de la Union consists of the Senate or Camara de Senadores (128 seats; 96 are elected by popular vote to serve six-year terms, and 32 are allocated on the basis of each party's popular vote) and the Federal Chamber of Deputies or Camara Federal de Diputados (500 seats; 300 members are directly elected by popular vote to serve three-year terms; remaining 200 members are allocated on the basis of each party's popular vote, also for three-year terms)
elections: Senate - last held 2 July 2000 for all of the seats (next to be held 2 July 2006); Chamber of Deputies - last held 6 July 2003 (next to be held 2 July 2006)
election results: Senate - percent of vote by party - NA%; seats by party - PRI 60, PAN 46, PRD 16, PVEM 5, unassigned 1; Chamber of Deputies - percent of vote by party - NA%; seats by party - PRI 222, PAN 151, PRD 95, PVEM 17, PT 6, CD 5, unassigned 4; note - special elections were held in December 2003; the PRI and the PRD each won one seat and were each assigned one additional proportional representation seat

Judicial branch:

Supreme Court of Justice or Suprema Corte de Justicia Nacional (justices or ministros are appointed by the president with consent of the Senate)

Confederation of Employers of the Mexican Republic or COPARMEX; Confederation of Industrial Chambers or CONCAMIN; Confederation of Mexican Workers or CTM; Confederation of National Chambers of Commerce or CONCANACO; Coordinator for Foreign Trade Business Organizations or COECE; Federation of Unions Providing Goods and Services or FESEBES; National Chamber of Transformation Industries or CANACINTRA; National Peasant Confederation or CNC; National Union of Workers or UNT; Regional Confederation of Mexican Workers or CROM; Revolutionary Confederation of Workers and Peasants or CROC; Roman Catholic Church

Mexico has a free market economy that recently entered the trillion dollar class. It contains a mixture of modern and outmoded industry and agriculture, increasingly dominated by the private sector. Recent administrations have expanded competition in seaports, railroads, telecommunications, electricity generation, natural gas distribution, and airports. Per capita income is one-fourth that of the US; income distribution remains highly unequal. Trade with the US and Canada has tripled since the implementation of NAFTA in 1994. Mexico has 12 free trade agreements with over 40 countries including, Guatemala, Honduras, El Salvador, the European Free Trade Area, and Japan, putting more than 90% of trade under free trade agreements. The government is cognizant of the need to upgrade infrastructure, modernize the tax system and labor laws, and provide incentives to invest in the energy sector, but progress is slow.

general assessment: low telephone density with about 15.2 main lines per 100 persons; privatized in December 1990; the opening to competition in January 1997 improved prospects for development, but Telmex remains dominant
domestic: adequate telephone service for business and government, but the population is poorly served; mobile subscribers far outnumber fixed-line subscribers; domestic satellite system with 120 earth stations; extensive microwave radio relay network; considerable use of fiber-optic cable and coaxial cable
international: country code - 52; satellite earth stations - 32 Intelsat, 2 Solidaridad (giving Mexico improved access to South America, Central America, and much of the US as well as enhancing domestic communications), numerous Inmarsat mobile earth stations; linked to Central American Microwave System of trunk connections; high capacity Columbus-2 fiber-optic submarine cable with access to the US, Virgin Islands, Canary Islands, Morocco, Spain, and Italy (1997)

prolonged drought, population growth, and outmoded practices and infrastructure in the border region have strained water-sharing arrangements with the US; the US has stepped up efforts to stem nationals from Mexico, Central America, and other parts of the world from illegally crossing the border with Mexico

illicit cultivation of opium poppy (cultivation in 2001 - 4,400 hectares; potential heroin production - 7 metric tons) and of cannabis (in 2001 - 4,100 hectares); government eradication efforts have been key in keeping illicit crop levels low; major supplier of heroin and largest foreign supplier of marijuana and methamphetamine to the US market; continues as the primary transshipment country for US-bound cocaine from South America, accounting for about 70 percent of estimated annual cocaine movement to the US; major drug syndicates control majority of drug trafficking throughout the country; producer and distributor of ecstasy; significant money-laundering center